‘Logistics hub to benefit all’

KUALA LUMPUR: Local players will not be left out of the regional e-commerce and logistics hub at KLIA Aeropolis, which is to be set up as part of the Digital Free Trade Zone (DFTZ).

Transport Minister Datuk Seri Liow Tiong Lai said the Government would make sure that Malaysians also benefited when inviting foreign partners into Malaysia.

“When we bring in international logistics companies, we want our local firms and Pos Malaysia to work with them.

“It cannot be just the 16 Chinese companies,” he told reporters after the soft launch of the International Federation of Freight Forwarders Association (Fiata) World Congress 2017 here yesterday.

Liow was referring to the logistics companies from China that had attended the launch of DFTZ last month here together with Alibaba founder Jack Ma.

The logistics hub will take up 8ha of land within KLIA Aeropolis to facilitate the smooth clearance of imports and exports, and expedite delivery of products.

The Government, Liow added, would request that Malaysia Airports Holdings Bhd set aside space for local companies at KLIA Aeropolis.

All smiles: Liow (right) shaking hands with Chua at the soft launch of the Fiata World Congress 2017 as Fiata World Congress 2017 organising committee co-chairman Krishnan Chelliah looks on.

Earlier, he said the logistics industry was the backbone of the supply chain and played a big role in stimulating trade and economic growth, adding that large-scale infrastructure and logistics projects would boost the country’s competitiveness.

On e-commerce, he invited local logistics players to take part in the fast-emerging market to expand it from US$1.5bil (RM6.6bil) to US$3.4bil (RM15bil) by 2020.

Federation of Malaysia Freight Forwarders (FMFF) president Alvin Chua Seng Wah said it would submit a paper to the ministry to propose the setting up of a task force to look into supporting local players at the logistics hub.

The 16 Chinese companies, he added, were last-mile logistics providers in charge of movement of goods from the transportation hub to the final destination.

“They still have to depend on us to do the Customs formalities and move the goods from the hub in China to that in Malaysia,” he said.

FMFF will be co-hosting the Fiata World Congress for the first time in Malaysia together with the Transport Ministry.

Themed “Logistics Bridging Global Trade”, the event, which will take place at the Kuala Lumpur Convention Centre from Oct 4 to 8, is expected to attract 1,000 delegates.

Chua said Fiata World Congress 2017 would be the perfect platform to showcase Malaysia’s potential as a top regional gateway for freight transport and logistics.

“We have two ports ranked 12th and 17th among the world’s top 20 container ports, excellent transport infrastructure and ease of doing business in Malaysia.

“We are confident that the delegates to the event will be pleasantly surprised at what the logistics industry in Malaysia can offer,” he said.